Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. Refer to Scenario 33-691. What would the change in the interest rate created by foreigners wanting to buy more U.S. assets do to investment spending in the United States? Question 54 options: Make it rise which by itself would increase U.S. aggregate demand. Make it rise which by itself would decrease U.S. aggregate demand. Make it fall which by itself would increase U.S. aggregate demand. Make it fall which by itself would decrease U.S. aggregate dem
Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. Refer to Scenario 33-691. What would the change in the interest rate created by foreigners wanting to buy more U.S. assets do to investment spending in the United States? Question 54 options: Make it rise which by itself would increase U.S. aggregate demand. Make it rise which by itself would decrease U.S. aggregate demand. Make it fall which by itself would increase U.S. aggregate demand. Make it fall which by itself would decrease U.S. aggregate dem
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets.
Refer to Scenario 33-691. What would the change in the interest rate created by foreigners wanting to buy more U.S. assets do to investment spending in the United States?
Question 54 options:
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Make it rise which by itself would increase U.S. aggregate
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Make it rise which by itself would decrease U.S. aggregate demand.
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Make it fall which by itself would increase U.S. aggregate demand.
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Make it fall which by itself would decrease U.S. aggregate demand.
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